Pennsylvania SALT Cap Calculator
For PA filers — with the Philly wage tax twist.
The short answer: At the scenario numbers below, the OBBBA SALT deduction is $8,500 — about $2,040 back at a 24% rate ($78 per biweekly paycheck).
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Your State's Slice of the $40,000 Cap
Philadelphia's wage tax (nearly 3.75% residents) stacks on PA's 3.07% — both are deductible state/local income taxes.
- • PA income tax + Philly wage tax + property tax → one SALT figure
- • Cap $40,000 under OBBBA (phase-out above $500,000 MFJ)
- • Suburban commuters: earned-income taxes where you work also count
Worked Example
A Philadelphia MFJ household, $260,000 MAGI: ~$14,500 combined PA + Philly wage tax plus $4,000 property tax.
- • Deductible amount: $8,500
- • Federal income tax savings: $2,040 (at the 24% marginal rate)
- • Per biweekly paycheck: $78
Keep Reading
Frequently Asked Questions
Is the Philadelphia wage tax deductible for SALT?
Yes — local wage taxes are local income taxes, fully part of your SALT total.
Did OBBBA change things for PA itemizers?
Yes — the cap rose to $40,000, and PA+Philly taxes commonly exceed $10,000 for city workers.